The Coordinating Minister of the Economy, Dr. (Mrs.) Ngozi
Okonjo-Iweala, has revealed that the Federal Government has concluded
arrangements to promote national building standards in the country in
collaboration with private developers.“We are gathered here today to discuss key issues that are critical to the delivery of affordable homes to Nigerians and to addressing the massive housing deficit estimated at between 17 and 23 million units. I am very pleased to be here with you to discuss these issues.
“As you know, housing is a priority sector for the administration of His Excellency, President Goodluck Jonathan. He has indeed catalysed a revolution in the housing sector and we have achieved some strong early successes. Let me start by highlighting some recent initiatives within the sector that has led us to where we are today,” she said.
The Minister said, “the NMRC was launched on January 16, 2014 by President Jonathan as a PPP initiative with private sector mortgage lenders to encourage and promote home ownership by Nigerians and unlock the socio-economic potentials of the housing sector in Nigeria.
“It is essentially a refinancing mechanism, which provides mortgage lenders with access to increased liquidity and long term finance, enabling them provide 20-year mortgages at affordable rates to borrowers.
She said the establishment of the NMRC was supported by a World Bank/IDA credit of $250 million at zero interest, 40-year period and 10 years grace, and 0.7 per cent commitment charge, to be disbursed in six tranches as Tier 2 capital.
Okonjo-Iweala revealed that, “NMRC has also so far raised N7.05 billion shareholders capital but will raise additional funds in the capital market through the periodic issuance of Federal Government guaranteed bonds to the tune of N50 billion to institutional investors, with the overall target of $5 billion in bond issuances in the medium term.”
Commenting on building standardisation and construction in addition to the process of certification of building, she explained: “Even though Nigeria has developed a detailed National Building Code, it has not evolved a matching set of building standards.
Some of the implications of this include lack of uniformity in buildings, duplication of costs and unsafe building structures.
“Through the new Nigeria Land, Housing and Urban Development Roadmap, the Federal Government will promote national building standards in collaboration with private developers to enhance the implementation of the NMRC visions.
“An efficient and effective building certification process is key to promoting sustainable houses and housing delivery as well as effective mortgage administration. So too is a building inspection process as a prelude to certification. It is important that we generate a building inspection through to certification process that is more amenable to rapid delivery of quality homes.
“Minimum standards for residential or commercial builds must be set below which no developer or builder worth his money will not go. This must be backed by some form of legislative teeth to the point where buildings must be duly certified before they are deemed mortgagable. It is an imperative requirement to avoid the occurrence of building failures and subsequent collapse,” she added.
